House File 2220 - Introduced



                                   HOUSE FILE       
                                   BY  JOCHUM, WESSEL=KROESCHELL,
                                       MASCHER, WINCKLER, and
                                       LENSING

                                       (COMPANION TO SF 2053 BY
                                        BOLKCOM)


    Passed House, Date               Passed Senate,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to advertising for delayed deposit services and
  2    consumer loans secured by a motor vehicle and making penalties
  3    applicable.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 5228HH 81
  6 kk/cf/24

PAG LIN



  1  1    Section 1.  NEW SECTION.  533D.10A  ADVERTISING.
  1  2    Any advertising through television, radio, or newspaper for
  1  3 delayed deposit services transacted under this chapter shall
  1  4 state the average interest rate as an annual percentage rate
  1  5 charged by the licensee for a delayed deposit service.
  1  6    Sec. 2.  NEW SECTION.  537.3209A  ADVERTISING FOR CONSUMER
  1  7 LOANS SECURED BY A MOTOR VEHICLE.
  1  8    Any advertising through television, radio, or newspaper for
  1  9 a consumer loan secured by a certificate of title to a motor
  1 10 vehicle used for a personal, family, or household purpose
  1 11 shall state the average interest rate as an annual percentage
  1 12 rate charged by the lender for the consumer loan.
  1 13    Sec. 3.  Section 537.5201, subsection 1, Code 2005, is
  1 14 amended by adding the following new paragraph:
  1 15    NEW PARAGRAPH.  bb.  Restrictions on advertising for
  1 16 consumer loans secured by a motor vehicle under section
  1 17 537.3209A.
  1 18                           EXPLANATION
  1 19    This bill relates to advertising for delayed deposit
  1 20 services or a consumer loan secured by a certificate of title
  1 21 to a motor vehicle.  The bill requires that advertising for
  1 22 delayed deposit services include the average interest rate
  1 23 charged by the lender for a delayed deposit service.  The bill
  1 24 requires that advertising for a consumer loan secured by a
  1 25 motor vehicle include the interest rate charged by the lender
  1 26 for a consumer loan secured by a motor vehicle.  The average
  1 27 interest rate must be displayed as an annual percentage rate.
  1 28    The penalty for violating the advertising restriction
  1 29 relating to delayed deposit services is the same as for any
  1 30 other violation of Code chapter 533D, including suspension or
  1 31 revocation of a license to provide delayed deposit services,
  1 32 issuance of a cease and desist order by the superintendent of
  1 33 banking, and issuance of an administrative penalty of not more
  1 34 than $5,000 for each violation.
  1 35    The bill provides that a consumer injured by a violation of
  2  1 the advertising restriction relating to consumer loans secured
  2  2 by a motor vehicle has a cause of action against the lender
  2  3 for actual damages and a penalty of not less than $100 and not
  2  4 more than $1,000 per violation pursuant to Code section
  2  5 537.5201.
  2  6 LSB 5228HH 81
  2  7 kk:nh/cf/24